Requires return of a security deposit by a landlord within 30 days unless the landlord gives written notice of retention for legally authorized cause

BILL NUMBER:S1276

Title of bill

An act to amend the general obligations law, in relation to the return of a security deposit by a landlord

Purpose or general idea of bill

This bill would add a new section 7-104 to the general obligations law, that will require a landlord who withholds all or any part of a tenant's security deposit, to notify the tenant by written statement listing the reasons for retention within 30 days after the surrender and acceptance of the premises. At that time, the landlord will be required to deliver the statement giving the reasons for retention, along with the difference if any, between the security deposit and the amount retained. A landlord's retention of a security deposit in violation of this section, will make the landlord liable for treble the amount of the security deposit wrongfully withheld from the tenant, together with reasonable attorney fees and court costs incurred by the tenant.

Justification

This bill would provide protection of tenants from possible misuse and unjustified retention of their security deposits by dishonest and negligent landlords. The bill in no way affects the legitimate ability of a landlord to retain all or part of a security deposit for nonpayment of rent or utility charges, abandonment of premises, damages caused by the tenant to premises, and cleaning contracted by the tenant. However, as it now stands, some landlords make deductions from security deposits for repairs that are never made, or overcharge a tenant for repairs made, or charge a tenant for damages that were preexistent. Moreover, many landlords fail to return security deposits within a reasonable period of time. This bill will act to eliminate these situations by imposing the burden of proof upon the landlord when all or part of a security deposit is retained, and by sanctioning violations with a penalty of triple the amount of any misapplied deductions on the part of the landlord.

Prior legislative history

2006: S.7070 (Duane), Died in Judiciary; A.9368 (Wright), Died in Judiciary 2007: S.2311 (Duane), Died in Judiciary; A.662 (Wright), Died in Judiciary 2008: S.2311 (Duane), Died in Judiciary; A.662 (Wright), Died in Judiciary 2009: S.1441 (Duane), Died in Codes; A.1435 (Wright), Died in Judiciary 2010: S.1441 (Duane), Died in Codes; A.1435 (Wright), Died in Judiciary

Fiscal implications

None.

Effective date

The sixtieth day after it shall have become a law.